Yet another burden on people: Govt hikes oil prices
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The federal government has increased the prices of petroleum products for the next fortnight, 24NewsHD TV channel reported late Monday.
According to the Finance Division notification, the price of petrol went up by Rs4.53 per litre and high-speed diesel (HSD) by Rs8.14 per litre. The new price of petrol is Rs293.94 per litre and HSD Rs282.24 per litre, the notification said.
It added the price variations were worked out by the Oil and Gas Regulatory Authority based on price variations in the international market. The government did not announce the prices of kerosene and light diesel oil (LDO).
This is the second surge in the oil rates in the ongoing month. Previously, the federal government increased the price of petrol by Rs9.66 but it slashed the price of HSD by Rs3.32 per litre.
The government reviews fuel prices every 15 days and adjusts them based on the movements of global oil prices and the exchange rate of the local currency.
Petrol is mostly used in private transport, small vehicles, rickshaws, and two-wheelers and has a direct bearing on the budgets of the middle and lower-middle classes.
Most of the transport sector runs on HSD. Its price is considered inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube wells and threshers and particularly adds to the prices of vegetables and other eatables.
The government is charging Rs60 per litre petroleum development levy (PDL) on petrol and HSD each.